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Phoenix City Council Approves Airport Ground Transportation Changes

by Public Relations | Published On:  | Last Updated: 
Update Includes Fee Adjustments, Investment Equity for Rideshare Providers

Phoenix, AZ – Today, the Phoenix City Council approved an amendment to the City Code which will allow Phoenix Sky Harbor International Airport to adjust fees for ground transportation.

Phoenix Sky Harbor International Airport does not receive any tax revenue and is supported only by rent and fees paid by those who use its facilities. Commercial ground transportation businesses have been paying only a fraction of what it costs to operate the ground transportation program at Sky Harbor that supports their operation and are currently being subsidized by other Airport businesses. With the changes approved by City Council today, the commercial ground transportation providers will be treated similarly to the other companies doing business at Sky Harbor.

Beginning February 1, 2020, new ground transportation fees will offer two options for rideshare providers: A $2.80 drop-off and pick-up fee at the PHX Sky Train Station or a $4.00 drop-off and pick-up fee for service at the terminal curb. When rideshare operators began in June of 2016, they represented only 9.3% of the commercial business. Today they represent 70% of the commercial traffic. This chart details current fees and new fees for each category. While certain regulated providers, like taxis, are not allowed to pass fees onto the drivers or to their customers, other unregulated providers such as rideshare operators can choose whether to pass the fees to their customers or drivers.

 

      44th Street
Ground transportation mode Current fees for pick-up only New Curbside Fees (pick-up & drop-off) each way Pick-up and drop-off each way With zero emission vehicle discount (pick-up and drop-off) each way
Rideshare $2.66 $4.00¹ $2.80 $2.40
1-8 Seats (Taxi) $2.66 $1.75² $1.23² $1.05
9-23 Seats (Shuttles) $3.48 $2.25² $1.58² $1.35
24+ Seats (Charter Buses) $7.38 $5.00² $3.50² $3.00

¹Rates increase to $4.25 in 2021, $4.50 in 2022, $4.75 in 2023, $5.00 in 2024, and in 2025, by greater of CPI or 3% annually

²Rates increase at the greater of CPI or 3% annually

NOTE: Rideshare curb share will be 30% in 2020, 40% in 2021, 50% in 2022, and in years after, will be equivalent to the percentage of all rideshare terminal trips compared to all authorized provider terminal trips during the preceding year.

 

The new fee structure will also encourage the use of the 44th Street PHX Sky Train Station, reducing the number of vehicles in the Airport core. The PHX Sky Train was built for and continues to dramatically reduce congestion on airport roadways, allowing for ground transportation businesses to utilize curb space. Incentivizing PHX Sky Train pick-up and drop-off will help ease traffic congestion and improve air quality by reducing the number of idling vehicles at Airport curbs. While many other major airports are forcing rideshare providers off their curbs to remote locations, Phoenix Sky Harbor is continuing to allow premium curbside service while offering a green incentive to use a remote location. The Council also provided for a 40% green discount for all commercial ground transportation providers using zero emission vehicles.

There are more than 700 permitted ground transportation providers at Phoenix Sky Harbor International Airport giving travelers options for how they get to and from the airport. In addition to taxis, travelers can utilize courtesy vehicles, intercity shuttles, pre-arranged vehicles, statewide shuttles or public transportation. For a list of options, please visit https://www.skyharbor.com/ParkingTransportation

For detailed information about the Ground Transportation Changes including a full copy of the Ground Transportation Fees Benchmarking Study, visit https://www.skyharbor.com/media and click on the link titled Ground Transportation and Rideshare Background Information.

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Phoenix Sky Harbor International Airport, America’s Friendliest Airport®, has an annual economic impact of more than $38 billion. Every day approximately 1,200 aircraft and more than 120,000 passengers arrive and depart at Sky Harbor. PHX Sky Harbor is funded with Airport revenue. No tax dollars are used to support the Airport.